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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.232-23 Assignment of Claims.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause lets a contractor assign its right to be paid under the contract to a bank, trust company, or other financing institution, which can then further assign that right. It also limits assignments to a single party (with a narrow agent/trustee exception) and bars disclosing classified documents or information to an assignee without written Contracting Officer authorization.

Applies to: Contractors whose contracts include this clause

What it requires

  • Cover all unpaid amounts payable under the contract in any assignment or reassignment
  • Not assign or reassign to more than one party, except to one party as agent or trustee for two or more financing parties
  • Not furnish or disclose classified documents or related information to an assignee until the Contracting Officer authorizes it in writing

Key terms: Assignment of Claims Act · assignee · financing institution · setoff · no-setoff commitment

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 32.806(a)(1), insert the following clause:

Assignment of Claims (MAY 2014)

(a) The Contractor, under the Assignment of Claims Act, as amended, 31 U.S.C. 3727, 41 U.S.C. 6305 (hereafter referred to as the Act), may assign its rights to be paid amounts due or to become due as a result of the performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency. The assignee under such an assignment may thereafter further assign or reassign its right under the original assignment to any type of financing institution described in the preceding sentence.

(b) Any assignment or reassignment authorized under the Act and this clause shall cover all unpaid amounts payable under this contract, and shall not be made to more than one party, except that an assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in the financing of this contract.

(c) The Contractor shall not furnish or disclose to any assignee under this contract any classified document (including this contract) or information related to work under this contract until the Contracting Officer authorizes such action in writing.

(End of clause)

Alternate I (APR 1984). If a no-setoff commitment is to be included in the contract (see 32.801 and 32.803(d)), add the following sentence at the end of paragraph (a) of the basic clause:

Unless otherwise stated in this contract, payments to an assignee of any amounts due or to become due under this contract shall not, to the extent specified in the Act, be subject to reduction or setoff.

Sections it refers to

Sections that refer to it

← 52.232-22 Limitation of Funds. · 52.232-24 Prohibition of Assignment of Claims. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.232-23 Assignment of Claims · SpendQuery